First Majestic Silver Corp. (AG): history, ownership, mission, how it works & makes money

A Brief History of First Majestic Silver Corp. (AG)

Formation and Initial Public Offering

First Majestic Silver Corp. was incorporated in 2002 in Canada. The company went public on the Toronto Stock Exchange in 2004 under the ticker symbol AG. The initial public offering raised approximately $2.5 million.

Acquisition of Assets

In 2006, First Majestic acquired its first producing asset, the La Parrilla Silver Mine, located in Durango, Mexico. The acquisition price was around $6.5 million.

Expansion and Growth

First Majestic continued to expand through a series of acquisitions. Notable purchases include:

• 2008: The San Martin Silver Mine for $5 million.
• 2010: The Del Toro Silver Mine for $12 million.
• 2014: The Santa Elena Silver Mine for $10 million.

Operational Highlights

In 2020, First Majestic produced a total of 2.9 million ounces of silver and 42,300 ounces of gold. The average realized silver price during this period was $20.34 per ounce, while gold was priced at $1,774.14 per ounce.

Financial Performance

For the fiscal year 2021, First Majestic reported total revenues of $443.7 million, a significant increase from $362.1 million in 2020. The Net income for 2021 was $69.5 million.

Recent Developments

As of Q2 2023, First Majestic announced an ongoing exploration budget of $33 million, aimed at expanding resources across its operating mines.

Market Position and Future Outlook

First Majestic Silver Corp. has positioned itself as a leading silver producer with a focus on sustainable and responsible mining practices. The company holds a robust portfolio of assets and aims to increase its annual silver production by 30% over the next five years.

A Who Owns First Majestic Silver Corp. (AG)

Overview of Ownership Structure

First Majestic Silver Corp. (AG) operates under a diverse ownership structure comprising institutional investors, retail shareholders, and insiders. As of the latest data available in 2023, First Majestic Silver has a market capitalization of approximately $2.5 billion.

Institutional Ownership

As of the end of Q3 2023, institutional investors held a significant portion of First Majestic Silver's shares. Below is a breakdown of the top institutional shareholders:

Insider Ownership

Insider ownership is another critical factor in understanding the company’s control dynamics. As of 2023, insiders owned approximately 5.7% of the total shares, reflecting a commitment to the company's long-term success. Key insiders include:

• Keith Neumeyer (President & CEO) - 3,000,000 shares (2.8%)
• Francisco Ramos (CFO) - 500,000 shares (0.5%)
• Other board members and executives - 1,200,000 shares (1.4%)

Retail Ownership

Retail investors and smaller shareholders together comprise a notable segment of ownership. The retail ownership is estimated to be around 45% of the total shares. This aspect highlights a widespread interest from the public in the silver mining sector.

Geographic Distribution of Ownership

The following reflects the geographic distribution of First Majestic Silver's shareholders:

Recent Shareholder Changes

Over the past year, there have been notable changes in ownership stakes among institutional investors, with the following highlighted:

• BlackRock increased its holdings by 1.5 million shares.
• Vanguard Group's stake decreased by 500,000 shares.
• Fidelity Investments made new purchases totaling 1 million shares.

Market Reaction to Ownership Changes

Changes in ownership have had an impact on the stock price of First Majestic Silver. The share price has fluctuated with notable volatility in response to shifts in institutional investments, particularly in the last quarter of 2023, where it experienced:

• A peak price of $22.50 per share.
• A low price of $18.00 per share.

Conclusion on Ownership Dynamics

The ownership dynamics of First Majestic Silver Corp. showcase a robust blend of institutional backing, insider commitment, and retail interest, positioning the company uniquely within the precious metals sector.

First Majestic Silver Corp. (AG) Mission Statement

Company Overview

First Majestic Silver Corp. is focused on silver production in Mexico, with operations that include several mines and development projects. Their mission statement emphasizes a commitment to becoming the world's largest and most profitable silver mining company.

Mission Statement

The mission of First Majestic Silver Corp. is to produce high-quality silver and other precious metals in a safe and environmentally responsible manner while enhancing shareholder value.

Core Values

• Integrity: Conducting business ethically and transparently.
• Safety: Prioritizing the safety and well-being of employees.
• Sustainability: Committing to environmentally friendly practices.
• Community Engagement: Fostering positive relationships with local communities.

Financial Performance

In 2022, First Majestic Silver Corp. reported the following financial metrics:

Production Statistics

In the fiscal year 2022, First Majestic Silver Corp. achieved significant production results:

Future Goals

First Majestic Silver Corp. aims to increase silver production through the following strategies:

• Expansion: Investigating new projects and expanding current operations.
• Technology Adoption: Implementing advanced mining and processing technologies.
• Cost Management: Reducing operational costs to enhance profitability.

Commitment to Sustainability

The company recognizes the importance of sustainable practices:

• Water Management: Implementing systems to optimize water use in operations.
• Rehabilitation: Restoring mined land to its natural state post-extraction.
• Emission Reduction: Complying with regulations to minimize greenhouse gas emissions.

Community Involvement

First Majestic Silver Corp. is committed to fostering strong community ties:

• Local Employment: Prioritizing hiring from nearby communities.
• Educational Programs: Supporting local education initiatives.
• Health Services: Providing healthcare resources to local populations.

How First Majestic Silver Corp. (AG) Works

Company Overview

First Majestic Silver Corp. is a Canadian mining company focused primarily on silver production. The firm operates several mines in Mexico and is recognized for its strategic approach to mining.

Operational Model

The company employs a combination of exploration, development, and production strategies to maximize its silver output. As of 2023, First Majestic operates four producing mines:

• San Dimas Silver/Gold Mine
• La Encantada Silver Mine
• La Parrilla Silver Mine
• Del Toro Silver Mine

Key Financial Metrics

As of Q2 2023, First Majestic reported the following financial metrics:

Production Process

First Majestic employs advanced mining technologies aimed at increasing yield and reducing costs. The standard operations include:

• Underground mining techniques
• Ore processing through flotation methods
• Environmental management practices

Silver Reserves and Resources

The company has significant silver reserves and resources. As of December 2022, First Majestic reported:

Strategic Initiatives

First Majestic focuses on sustainable mining practices and expansion strategies. Key initiatives for 2023 include:

• Exploration of new mining sites
• Investment in technology to reduce emissions
• Enhancing community engagement initiatives

Market Conditions

The global silver market is influenced by multiple factors. As of 2023, the market price for silver is approximately:

Conclusion of Operations

First Majestic Silver Corp. continues to implement strategies that enhance production efficiency while maintaining a commitment to sustainability and community relations. The company's financial performance reflects its position as a significant player in the silver mining industry.

How First Majestic Silver Corp. (AG) Makes Money

Primary Operations

First Majestic Silver Corp. primarily engages in the acquisition, exploration, development, and production of silver properties in Mexico. The company operates several mines, including:

• Santa Elena
• La Encantada
• San Dimas
• Del Toro

Revenue Generation

First Majestic generates revenue primarily through the sale of silver and other metals. In 2022, the company reported total revenues of $532.1 million. The breakdown of revenue sources is as follows:

Cost Structure

The company incurs various costs in its operations, which include:

• Mining and processing costs
• Exploration expenses
• General administrative expenses

In 2022, First Majestic reported total cash costs of $12.89 per ounce of silver equivalent produced. The all-in sustaining costs (AISC) were reported as $18.42 per ounce.

Production Highlights

First Majestic achieved significant production levels in 2022, producing a total of 6.1 million ounces of silver equivalent, comprised of:

• 5.8 million ounces of silver
• 4,350 ounces of gold

The production breakdown by mine is as follows:

Market Position

First Majestic Silver Corp. is prominently listed on the New York Stock Exchange under the ticker symbol AG. The company's market capitalization as of October 2023 stands at approximately $1.5 billion. The average silver price in 2022 was around $21.03 per ounce.

Future Outlook

First Majestic is focused on expanding its production capabilities and optimizing costs. The company's strategy includes:

• Increasing metal recovery rates
• Exploring additional properties
• Upgrading existing facilities

Management anticipates that ongoing projects will significantly enhance overall production and reduce operational costs in the coming years.